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HB 8604

AN ACT RELATING TO TAXATION -- PERSONAL INCOME TAX

2026 Regular Session Introduced by Lauren Carson and 9 co-sponsors

Rhode Island may require annual information returns by Feb 28, aligned with federal thresholds, covering various payees and fiduciaries to improve tax administration.

06/23/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · HB 8604

Overview

HB 8604 (Rhode Island, 2026) is an act relating to personal income taxation. It authorizes the tax administrator to require additional information reporting and aligns certain information filing timelines with federal tax filing thresholds. The bill takes effect upon passage.

Main purpose and intent

  • To authorize the Rhode Island tax administrator to prescribe regulations mandating information returns and notices related to personal income tax.
  • To establish annual information reporting requirements by February 28, aligned with federal Internal Revenue Code thresholds.
  • To ensure fiduciaries (receivers, trustees, assignees) and other specified parties provide timely notices of their status or qualification where relevant to tax administration.

Key provisions and changes

  1. General authority to regulate information returns

    • The tax administrator may prescribe regulations governing:
      • The keeping of records
      • The content and form of tax returns and statements
      • The filing of copies of federal income tax returns and determinations
      • Any returns, statements, or records deemed sufficient to determine tax liability or collection

  2. Partnerships

    • Partnerships with Rhode Island-sourced income must file a return for the taxable year detailing all income, deductions, and other pertinent information as prescribed by regulation.
    • Partnerships with nonresident partners having RI-sourced income may be subject to existing provisions governing nonresident income (referencing § 44-11-2.2).

  3. Information at source (annual information reporting)

    • The tax administrator may require information returns to be filed by February 28 each year.
    • Reporting thresholds should be consistent with applicable federal information filing thresholds under the Internal Revenue Code.
    • The scope includes, but is not limited to, payments or credits of $100 or more in a calendar year, applicable to:
      • Taxpayers (RI residents)
      • Lessees or mortgagors of real or personal property
      • Fiduciaries
      • Employers and all officers/employees of the state or municipal entities
      • Records of interest, rents, wages, salaries, premiums, dividends, and other income
    • A duplicate of wage withholding statements provided by employers to employees will satisfy the information return requirement for wages.

  4. Fiduciaries

    • Receivers, bankruptcy trustees, assignees for the benefit of creditors, or similar fiduciaries must notify the tax administrator of their qualification as such, as required by regulation.

  5. Effective date

    • The act takes effect upon passage.

Who would be affected

  • Rhode Island individuals with income tax reporting requirements
  • Partnerships with RI-sourced income
  • Nonresident partners with RI-sourced income (via existing rules)
  • Employers, fiduciaries (trustees, receivers, assignees), and their officers/employees
  • Lessees, mortgagors, and other payers of income (interest, rents, etc.) who would be required to file informational returns
  • Tax administration and taxpayers subject to RI information reporting processes

Procedural and timeline aspects

  • Referred to House Finance after introduction on May 29, 2026.
  • The act specifies an annual information returns deadline of February 28, aligning RI reporting with federal thresholds.
  • The specifics of reporting formats and regulated thresholds would be developed through regulations issued by the tax administrator.

Potential impact

  • Increased transparency and enforcement capability for Rhode Island through enhanced information reporting.
  • Administrative alignment with federal information filing practices, potentially reducing confusion and administrative burden.
  • Additional reporting requirements for businesses and fiduciaries, which could affect compliance time and recordkeeping.
  • Clearer processes for withholding wage information through copies of W-2-type statements satisfying RI information return requirements.

Compiled from official sources — confirm details with the bill’s official record.

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